These are federal student loan programs and need to be repaid. There are two types of Stafford Loans: Subsidized and Unsubsidized. You must have financial need to receive a Subsidized Stafford Loan. The USDOE will subsidize the interest that accrues during certain periods. Financial need is not a requirement for an Unsubsidized Stafford Loan. You are responsible for paying the interest that accrues on Unsubsidized Stafford Loans.
Stafford Loans are made from the William D. Ford Direct Loan Program, commonly known as Direct Loans. In the Direct Loan program the loan funds are made available by the USDOE and repaid to them. You may receive both Direct and FFEL Loans, but you can’t receive the same type of loan for the same period of enrollment. |